Harvard Business Review LogoJori BoltonPaula Santos, the chief sustainability officer at Danish furnishings company Vestenborg Home, must decide how to respond when an audit of Greenspan, a long-trusted Vietnamese supplier, discoversPaula Santos, the chief sustainability officer of Vestenborg Home, listened as the third-party audit team explained its findings. It was the final review session of her annual supplier audit cycle, part of a commitment the Danish furnishings company had made several years earlier. The goal was to ensure that 100% of Vestenborg’s vendors complied with strict ethical standards covering labor practices, health and safety, and environmental impact. The auditors had spent weeks in India, Vietnam, and Thailand to inspect facilities, review records, and interview workers. Most of what Paula had seen so far was familiar: a few documentation gaps and delays in conducting safety drills.A version of this article appeared in the July–August 2026 issue of Harvard Business Review.
Case Study: A Key Supplier Failed a Labor Audit. Now What?
Paula Santos, the chief sustainability officer at Danish furnishings company Vestenborg Home, must decide how to respond when an audit of Greenspan, a long-trusted Vietnamese supplier, discovers several violations of labor and safety standards. Greenspan’s foam cores are critical to the imminent launch of Vestenborg’s sustainable EcoLuxe mattress. Paula travels to Vietnam and meets with the supplier’s new leader, Nguyen Van Minh. He acknowledges the violations—underage workers with falsified documents, overtime above Vestenborg’s limit, and a blocked emergency exit—but claims they were due to temporary circumstances, such as wanting to help orphans find a home and dealing with increased pressure during the EcoLuxe ramp-up. Paula wants to believe Minh, but she’s troubled that he substituted his own judgment for Vestenborg’s nonnegotiable standards. Back at headquarters, the Vestenborg executive team weighs the conflicting priorities of maintaining supply continuity and protecting against reputational and ethical risk. As Paula knows, suspending Greenspan until it can guarantee compliance would likely delay the EcoLuxe launch; continuing production, even under stricter oversight, could preserve the launch timing but invite accusations of hypocrisy.
